Swiss Economy Minister Guy Parmelin stated that the agreement would bring Switzerland’s tariff rate in line with the European Union’s 15%, benefiting about 40% of Switzerland’s exports to the U.S. While acknowledging that Switzerland would have preferred these investments to be made domestically, Parmelin emphasised that the government is actively working to reduce costs for Swiss businesses.
The agreement also includes a cap of 15% on tariffs for Swiss pharmaceutical producers, protecting them from future US Section 232 national security duties, which could rise to 100% on certain drugs. This cap will also apply to other sectors, including semiconductors, aligning Swiss companies with their European competitors.
Additionally, Switzerland will reduce tariffs on US industrial products, fish, seafood, and non-sensitive agricultural goods. In return, Switzerland will provide the US with duty-free access to a specified quantity of beef, bison, and poultry. The deal also includes mutual recognition of US motor vehicle safety standards, addressing previous concerns regarding European reluctance to buy American-made cars.
Swiss industrial groups have welcomed the agreement, highlighting its fairness and the benefits it brings to their sectors, such as machinery, precision instruments, watchmaking, and food. The reduced tariffs are expected to boost Swiss economic growth, which is forecast to rise from 0.9% to over 1% in 2026.